Billionaire Mukesh Ambani flagged the “unprecedented dislocation” unleashed by the US-Iran war after Reliance Industries Ltd.’s quarterly profit slipped but managed to meet analyst expectations due to a strong show by its consumer units.
Net income fell 13% on-year to ₹16,970 crore for the quarter ended March 31, according to an exchange filing Friday, as its core refining business was roiled by the ongoing conflict in the Persian Gulf. The profit nearly matched the 169.4 billion-rupee average of analyst estimates compiled by Bloomberg.
“The war in West Asia has led to unprecedented dislocation in global supply chains,” Chairman Ambani said in a post-earnings statement, adding such “recent events have underscored the critical need of energy security.”
Revenue at the refining-to-retail conglomerate rose 13% to ₹2.99 lakh crore, while costs surged 15% to ₹2.76 lakh crore. Reliance’s retail business saw a 11% rise in revenue from the same period last year. For its soon-to-be-listed telecom unit, the jump was sharper at 12%.
The latest earnings give the first glimpse of how Reliance that operates the world’s largest oil refining complex has been tackling the worst oil market disruption in history triggered by US-Iran war that has upended economic forecasts globally since it started on Feb. 28. Refineries across Asia have been struggling as crude oil shot past a record-setting $119 per barrel in March.
Alternative supplies became costlier as a fifth of global oil supply got choked due to effective closure of the Strait of Hormuz, a crucial waterway that’s become a centerpoint in this conflict.
While Reliance’s export-oriented refinery was exempt from a tax India imposed on fuel exports, the twin facility providing fuel supplies to the local market was forced to produce more low-margin liquefied petroleum gas, or LPG, to meet domestic shortages, which analysts had warned may pressure margins.
‘Geopolitical Conflict’
Earnings from oil-to-chemicals business fell as sharp rise in crude oil, shipping and insurance costs overshadowed the strong margins on fuels, according to the Reliance statement. “Resolution of geopolitical conflict, resumption of supply channels is critical to normalize markets,” it added in a post-earnings presentation.
But Reliance, being a diversified conglomerate, was cushioned as its Reliance Jio Infocomm Ltd. and Reliance Retail Ltd. — India’s largest wireless operator and retailer, respectively — logged strong growth numbers.
Jio’s net income rose 10% to ₹7320 crore, on a base of 524.4 million subscribers. “We are advancing steadily towards the listing of Jio Platforms,” Ambani said in the statement.
Earnings before interest, tax, depreciation and amortization, or Ebitda, for Jio jumped 18% from the same quarter last year while for retail, the metric advanced 3%. The retail unit also added 333 stores during the March quarter, pushing the total tally to 20,160 stores.
The oil-to-chemicals segment’s Ebitda slipped 3.7% while for oil and gas, it plunged 18%.
On the renewables front, Reliance is in advanced discussions with potential green ammonia buyers in Japan, South Korea and Europe and expects to sign more contracts. The company last month signed a $3 billion, 15-year supply pact with Samsung C&T Corp.
‘Market Shock’
“This quarter witnessed the largest energy market shock,” Srinivas Tuttagunta, refining and marketing chief operating officer, said in a post-earning call Friday, adding that Reliance has been scouring the globe for crude oil supplies to minimize run rate cuts at its refinery.
The company has secured barrels from Venezuela, Russia, Brazil, Mexico by leveraging its relations with suppliers across the world, Tuttagunta said.
Reliance was among Indian refiners who snapped up unsold cargoes of Russian crude last month after the US granted a temporary waiver to help plug the shortfall due to the upheaval in the Middle East, Bloomberg News reported earlier. It also got a license from the US to purchase Venezuelan oil directly in February and is in talks with America First Refining for buying an equity stake to signing offtake agreements.
Brokerages, however, have warned that the pain is expected to get worse. While the last quarter saw two months of normalcy — January and February — the ongoing June quarter will see the full impact of this conflict as peace talks between the US and Iran drag and the critical waterway of Hormuz remains closed.
“Outcomes for RIL’s Refining and Petchem businesses are uncertain in the very near term,” Sanjay Mookim and Atishy Rathi, J.P. Morgan analysts wrote in an April 19 note. Its oil-to-chemicals business accounts for half of its total revenue and a third of its earnings before taxes, interest and depreciation.
Reliance shares have slipped almost 16% this year after a nearly 30% surge in 2025.
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Published on April 26, 2026